News:

• A new Touristic City!

  With an investment of 700 million dollars one will begin to give form to the first baptized viable tourist city like "Amaitlán Island". Victor San ...

  Read More

• New Development In Mazatlan, Sinaloa, Mexico,

  http://www.youtube.com/watch?v=jW55c8tkx6k

  Read More

Loan calculator

Oficina Matriz
Av. Camarón Sábalo 312-A
Zona Dorada, Mazatlán Sinaloa
Tel. (669)916-0020
Fax (669)913-1554
Nextel
72*15*25366 & 72*15*31386

• Follow us at:
  
       

Buying a Property in Mexico

Foreign property ownership in Mexico is highly regulated by the Mexican Law and the Constitution. This applies particularly to the property ownership in the Restricted Zone, which is described by the Mexican Constitution as land within 50 kilometers (31.07 miles) from the coastlines and 100 kilometers (62.14 miles) from the borders. In 1971, in the effort to increase foreign investment in Mexico, the Mexican Constitution has been amended to allow foreigners to purchase property in the Restricted Zone through a Bank Trust called Fideicomiso. Furthermore, with the establishment of the North American Free Trade Agreement (NAFTA) in the early 90s, the fideicomiso has become a very straight forward, trusted mechanism that millions of North Americans have utilized to their benefit over the last decades.

Fideicomiso is an equivalent to an American beneficial trust and it is the only legal mechanism that foreigners can use in Mexico to acquire land in the Restricted Zone. A foreign buyer requests from a Mexican bank to act as a trustee on his/her behalf. The bank obtains a permit from the Ministry of Foreign Affairs to acquire the chosen property in trust. The bank then holds the property in trust on behalf of the owner for the exclusive use of the buyer/beneficiary and is responsible to the buyer for full technical, legal, and administrative supervision of the trust. The buyer can nominate other beneficiaries of the trust as well as specify who will be a beneficiary of the trust after his/her death.

The Fideicomiso is issued for 50 years with the right to be renewed indefinitely at a yearly fee. The beneficiary of the trust has total rights to the property and he/she can develop it, rent it, lease it, sell it, and deed it at any time during the ownership period.

Hipotecaria Nacional official website and its Mortgage Simulator.

Santander mortgages website and its Mortgage Simulator.

Banorte mortgages website and its Mortgage Simulator.

HSBC mortgages website and its Mortgage Simulator.

Scotiabank mortgages website and its Mortgage Simulator.

INFONAVIT & FOVISSTE mortgages website official websites.

• Closing costs are traditionally paid by the buyer. They include for the most part, the following items which are normally based on a percentage of the appraised value of the property.
• Public Notary: Legal fees & Certificate stating the property is free of all liens and burdens.
• Real Estate Acquisition tax of aprox. 2.2%
• Public Registry fee
• Appraisal fee
• Fideicomiso – Bank Trust
• Miscelaneous – Title Insurance or home insurance

Normally, closing costs are approximately 3% to 5% of the total appraised value. In Mexico, a “Notario” (Public Notary) is responsible for transfer of title from the seller to the buyer. He will also provide an itemized statement of closing costs at the completion of the transaction.

• Find a desired property
• Prepare a sales agreement including costs, inclusions, exclusions and deadlines as well as the buyer and the seller cancellation penalties if either party pulls out
• If buying a property in the Restricted Zone, is needed to set up a real estate trust (fideicomiso)
• Buyer needs to get a copy of the Land/Property Deeds from the seller so your Public Notary can run due checks on the property to be purchased
• Public Notary will carry out an official appraisal of the property
• Public Notary will request from you a presentation of official documents that include, but are not limited to your passport, birth certificate, marriage certificate and your visa
• Seller will need to present to your Public Notary documents that include, but are not limited to the original property deed, updated tax receipts for the property (shown as paid), public utilities bills & upddated details of land services fees (shown as paid)
• Seller will pay the Capital Gains Tax
• Buyer will make a property payment simultaneously when the deed is signed over to you, which is done in the office of your Public Notary
• Buyer will need to settle the Public Notary fees as well as other taxes associated with purchasing a property.